Running head: SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 1

Solutions for Energy Stability through Progressive Resource Strategies in the MENA Region

Richard M. Wannall

Norwich University

SOCI 406A

Professor Jeffrey Shaw

24 June 2017
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I. Introduction

The Middle East and North Africa (MENA) is a diverse region whose economic potential has not

been fully unleashed. The countries in this region benefit largely from the strategic geographical

location at the intersection between Africa, Europe and Asia. For several millennia, the MENA

region has contributed to the progress of humanity historically, culturally and scientifically.

Moreover, the region is home to youthful and energetic population which depicts the bright

future of the region. More importantly, the MENA region comprises a significant share of the

global energy resources including oil and gas and nuclear energy. In many of these countries, the

energy resources are the backbone of the economy. The large share of the energy resources in the

world makes the region to have the potential of boosting the global trade and investment links.

Despite having these resources and the high potential for development, the region still faces

uncertainties in its political and economic stance. The area still faces both domestic and regional

conflicts that are driven by economic forces (OECD, 2013). The most recent conflict in 2011

was the Arab Spring which involved the call for better political and economic freedom in Tunisia

and Egypt and later spread to other countries in the region. The conflict was to promote better

governance in the region as well as promoting economic prosperity.

Although the MENA region has been faced with instability, the opportunity for political and

economic reform is unprecedented. However, the political reforms cannot be separated from the

economic reforms. Many of the countries in this region are still faced with several problems

including; high unemployment rates, the low participation of women in the labor force, low

levels of development of the private sector, the bloated public sector, poor corporate governance

and pervasive corruption. Since energy is a main problem in this region, there is the necessity for
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the governments to invest in more diversified energy portfolio to help in ending the political

instability in the region. Moreover, the governments of the countries within the region will need

to work together to implement policy-level energy interventions as a way of improving the

existing energy policies.

II. Thesis

The aim of this paper is to develop a progressive energy strategy which is functional throughout

the MENA region to achieve regional stability. As a roadmap towards political stability, the

leading countries within the region must develop a strategic renewable energy solutions to be

emulated by the lagging countries as a way of developing political, regional and economic

stability. If adequately implemented, the model can help in ending the Islamic radicalization,

which has become a threat to the global community for several years. Clearly, the development

of a geopolitical and economic model of conflict prevention will provide a sustainable example

that can be followed by the other regions in the prevention of violent, exclusionary social

movements. Prevention of economic crises will help in containing the violent extremists rather

than countering violent extremists as a way of preventing crises.

III. Background

For several years, the Middle East and North Africa region has undergone economic stagnation

which has contributed to the civil and regional wars. According to Momani (2016), one of the

major drivers of the uprisings that swept across the region in 2011, popularly known as the Arab

Spring as the region’s economic stagnation and frustration. The poor economic performance of

the region is known to be the main factor driving radicalization, which is a major trend in many

Islamic states today and a threat to the international community. In a region characterized by

high birth rates and low employment rates, many of the young people in the region are left
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jobless, making it easy for them to be recruited by the extremist Muslim groups to preform

terrorist activities and to rise against the western democracies.

Poverty is also known to be a pervasive problem in many of the countries in this region.

Although the region comprises a significant portion of the global energy resources, the poverty

rates still remain high. Although many of the MENA countries do not collect poverty related data

or do not make them public, the few that do show high numbers of people who lack sufficient

incomes and cannot meet their basic needs. According to Iqbal and Nabli (2006), a recent

country-level survey of the households in the region by the World Bank in the region revealed

that there exists diversity in the poverty trends and patterns within the region. The high level of

poverty in the region reflects the stagnation in the economies of the countries in this region and

highlights the importance of policies that promote growth in the MENA region.

The main challenge of the MENA countries is the generation of inclusive growth which is not

propelled by the government but the private sector. Originally, the economies in the region have

been controlled by the governments that act as the major sources of employment to the middle

class. The economic stagnation in the region has been promoted by the fact that the governments

extract rent from the potential investors, making it difficult for them to use their talent and

ambitions to create jobs for the local populations. The lack of employment opportunities for the

young and energetic generations result in increased radicalization of the citizens and the Muslim

community which ultimately causes global insecurity. Job creation and employment is a

significant factor in the development of the economy of any given country. Although the MENA

countries can trade in energy, there is still the requirement that they open up their economies for

direct foreign investment to improve their economic performance.

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Although the MENA region benefited from the sharp increase in the oil prices in the 1970s, the

situation did not last long as fluctuations in the oil prices due to poor governance in the following

years plunged the region into economic stagnation and wars. Over the last three decades, the real

GDP per capita of the MENA region has continued to decline relative to the rest of the

developing world. The reason for this economic downturn is the weakness in the oil markets due

to competition from the oil producers outside the MENA region. Additionally, the high birth

rates in the region resulted in increased population that aided in reducing the rate of growth of

the GDP per capita.

Today, despite the presence of energy resources that can be used to promote development in the

region, most of the countries still remain underdeveloped. Many of the Arab countries in the

MENA that import and export energy rely on remittances, foreign direct investments and foreign

aid. Consequently, the countries are bound to face increased economic pressures when the oil

prices fluctuate. Moreover, the total dependence of the MENA countries on the revenues from oil

have contributed to the low political and economic development in the region, making it difficult

for the countries to advance in a systematic way.

For the purpose of this paper, the Middle and North Africa region comprises; Algeria, Morocco,

Egypt, Iraq, Iran, Kuwait, Bahrain, Israel, Jordan, Libya, Lebanon, Tunisia, United Arab

Emirates (UAE), Yemen, Oman, Palestine, Saudi Arabia, Qatar and Syria. Based on the World

Bank aggregates, the regional data for the MENA include Malta and Djibouti unless otherwise

stated.

IV. The Landscapes in the MENA Region.

The MENA region has been characterized by the historical crises that have had adverse

consequences on the political and economic stability of the member countries. Initially across the
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region, the central government had over the country and its resources. However, today many of

the central institutions are faced with mounting pressures from the public due to the decadence in

the institutional frameworks. Following the Arab Spring in 2011, it is becoming clearer that the

old Arab order defined by authoritarian political regimes and oil-based economies is passing

away. Although many of the Arab countries are trying to prevent the occurrence of crises,

without better and clear alternatives, there is the fear that even more repressive systems may

sprout. Consequently, the Arab countries need to develop strategic policies that cover the

human, political and economic landscapes and address the root causes of the poor economic

performance of the region as a way of ending the crises that have caused instability in the MENA

region for years.

V. The Human Landscape

The collapse of the traditional Arab order in many of the MENA countries has significant

implications on the interactions between the Arab citizens and their governments. Across the

globe, there is the struggle by many societies to adapt to the ever-changing global environment in

terms of technology and cultural revolutions. However, in the MENA region, these changes

provide an explosive mix considering the political and economic challenges experienced and the

propagation of wars and radicalization. In the Arab countries, social transformations are

occurring at the individual level within four main categories namely; human development and

demography, polarization, migration and social activism.

a. Demography and Human Development

One of the factors that will drive the future stability of the MENA region is human development.

The main reason for this transformation is the unsustainability in the reliance on the energy

resources due to the increasing populations and the changes in the global energy markets.
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Although there have been improvements in the Arab countries in terms of literacy and inclusive

education, other areas of human development have trailed making it difficult for the countries to

shift from the public sector to the private sector-led economic growth. A major contributor to the

status quo is the attitudes of the regional governments. The rise in unemployment rates has

caused several Arab countries to perceive the younger individuals as threats to economic growth,

barring their activities from the public realm. Such attitudes have caused the region the

demographic dividend. The result has been poor economic growth driven by the existence of

only a small portion of the population in the working class.

The demography of the MENA countries has also contributed greatly to the existing economic

stagnation and political instability in the MENA countries. Historically, the fertility rates in these

Arab countries were approximated at 5.2 children per woman. The result is that the number of

people in the MENA countries cannot be supported by the oil-based economies due to

uncertainties in the global oil markets. Although the fertility rates reduced to 3.4 children per

woman in 2014, there exists a youth bulge in many of the Arab countries (Goldstone, 2012). The

existence of a high population of youths in many of the MENA countries means that there are

large numbers of people demanding vocational training, higher education and employment. In

many countries, conflicts arise when the demands of the youths are not met. Globally, the Arab

countries have the highest levels of youth unemployment. The result is high levels of frustration

and struggles and ultimate eruption of civil wars. The population pressures make it important for

the Arab world to address human development issues and encourage employment opportunities

by the private sector. If the Arab countries fail to focus more on the human development, the

population trends are likely to be a source of problems rather than prosperity in the coming

years.
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Fig 1: Population pyramid of the Arab world

Source: US Census Bureau, 2016

b. Polarization

The rise and convolution of social polarization in many of the Arab countries is associated with

the changing social constructs of the populations. Social polarization refers to the segmentation

of societies which results from a number of factors such as economic displacements, inequalities

in income and real estate fluctuations. It results in the existence of various social classes such as

the low class, middle class and the high class. Although polarization varies from country to

country and region to region, the Arab societies are highly polarized compared with the other

societies.
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In the Arab societies, polarization is divided into two distinct categories. First is the ideological

polarization that exists mainly between the religious and secular forces. The ideological

polarization in the Arab countries is demonstrated by the experiences that followed the Arab

Spring of 2011 in Egypt and Tunisia. After the removal of President Hosni Mubarak in Egypt,

the military regime attempted to persuade the citizen to forego the pluralist politics and the

personal freedoms in exchange for political stability and security. However, the repressive

measures such as the abuse of the human rights, the uncontrolled privileges of the military and

security institutions and the passing of laws that are undemocratic laws led to the worsening of

the already existing social divisions. In Tunisia, there has been significant success in the creation

of a constitution that combines both the secular and religious ideologies and provides all the

citizens with an equal ground in which issues such as political and economic grievances and

social tensions can be solved.

The second form of social polarization that exists in many Arab societies is the political

polarization. Polarization can be used in politics by one political group to blame the other for the

socioeconomic problems affecting a country or to mobilize the core constituencies against one

group. Political polarization has played a vital role in countries such as Iran and Syria where

radicalization of the partisan rhetoric has resulted in the legitimization of political violence,

creating a perfect ground for immoderation and terrorism. The result of political polarization in

many of the Arab countries have been adverse, ranging from communal tension in countries such

as Lebanon and Bahrain to civil wars and the collapse of nations in Iraq and Syria.

c. Migration

Migration entails the movement of people from one place to another for various reasons such as;

fleeing political tension in their counties, in search of education and to get employment
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opportunities. In the Arab countries, migration is one of the factors that increases the complexity

of the demographic and human development challenges. Following the 2011 Arab Spring, there

have been massive movements of people from one country to another in the MENA region.

Countries such as Iraq and Syria that have been adversely affected by the civil conflicts have had

large numbers of people moving to the neighboring countries and to the western world to seek

safety (Cammack et al., 2017). The result of the massive migrations for such countries is human

development insufficiencies and a sharp decline in the number of remaining professionals. The

lack of human capital makes it difficult for the countries to experience economic turnaround.

Migration does not only affect the countries that lose their populations but also the countries on

the receiving end. Arab countries such as Lebanon and Jordan that have received influx of

immigrants from the war tone countries have their economies worsening since they are

experiencing serious strain on their education, security systems and the welfare. To illustrate that

migration is a serious problem affecting the Arab community, a survey in 2015 revealed that

more than 143 million Arabs were living in countries experiencing wars and 17 million of them

had been forcefully displaced. Furthermore, the survey revealed that although he Arabs comprise

only 5 percent of the global population, they account for more than 50 percent of its refugees

(Yahya, 2015).

The civil and regional conflicts experienced in the MENA region and the consequent movement

of people have also resulted in changes in the social constructs in many of the Arab countries. In

many of the countries, the refugee populations are increasingly becoming trapped in the

intergeneration cycles of poverty. The fleeing of the youth and the middle class from those

countries may also result in their contribution to post war restoration. According to Cammack et

al (2017) a recent study reveals that many of the Syrians who fled to Greece in 2015 have
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attained secondary and university education. Consequently, they are better placed to restore

peace in their country.

d. Social Activism

The existence of authoritarian regimes in many of the Arab countries led to the exclusion of the

citizens from the policy making processes, formal political spaces and overseeing the

performance of the government for several decades. The Arab citizens have, however, not been

spectators in development projects in their regions but have used peaceful activism to raise their

concerns to their governments. Many of the youths in the Arab countries have been at the

forefront of peaceful demonstration advocating for improvements in the deteriorating living

conditions, the fight against corruption, the need for total respect of the human rights and the

fight against existing inequalities within the region.

For several decades, protests have been used by the citizens in the Arab countries to voice their

grievances and criticize the failures of their national administrations. The protests mainly

covered both the social and political issues affecting the countries, leading to the engagement of

the citizens in activism. The citizen engagement in the social activism led to the development of

new energy in the Arab communities and the use of the modern technologies in communicating

with the public. The social activist groups in the Arabian countries that advocate for change and

improvement in the living conditions included; Kefaya, the April 6 Movement and the Youth for

Change Movement in Egypt. The Fifth Fence in Kuwait, the Jordanian Democratic Youth Union

in Jordan and the Youth Society for Human Rights in Bahrain.

Although civil activism is considered a tool for the liberalization of many of the Arab countries,

may of the countries that are still faced with conflicts have continued to mishandle the civil

society organizations, causing them to seek safety havens to remain relevant. The continual
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repression of the civil society movement in many of the Arab countries will make it difficult for

the Arab countries to embrace the new social contracts. In Egypt, for instance, the existing

military regime has suppressed the pluralist politics and imposed strict regulations on the civil

society organizations. However, the regulations have not stopped the Egyptians from criticizing

the failures in the government. In fact, the sprouting of young activists comprising the university

students, film makers and novelists have shaped civil activism in the country and are demanding

democratic reforms as a way of ensuring both political and economic stability.

Despite the government regulations opposing the existence of social activism, civil society

groups have continued to sprout in countries such as Syria and Yemen. The eruption of brutal

civil wars in Syria in 2016, for instance, did not hinder the non-governmental organizations and

civil groups within the country from protesting and providing humanitarian assistance to the

affected populations. Although social activism remains popular in the Arab countries, the

conflicts in the region have caused many of the citizens to support the existing dictatorial

regimes that aim to maintain the status quo.

VI. The Political Landscape

The increase in the numbers of uprisings in the Arab countries in the recent years have led to the

realization of the need for change by many of the governments. However, some of the regimes

that promote maintenance of the status quo continue to play survival games. The survival of most

of the repressive regimes in the MENA region has been difficult following their poor response to

the revolutions which worsened the already existing economic, social, political and cultural

problems, hindering them from regaining control of the nations. Politically, many of the Arab

countries are undergoing changes in four areas namely; governance, the impacts of security and

the media of the Arab politics and rentierism.

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a. Governance

One of the problems that has been facing the Arab countries in the MENA region for several

decades is poor governance. Even after the Arab wars of 2011 that spilled over in several

countries in the region, a number of Arab countries still struggle with poor governance (Joyce

and Rasheed, 2016). The response has, however, differed from one country to another. In

countries where rebellions against the governments were persistent, there has been the necessity

of developing government systems that are more inclusive and responsive to the needs of the

people. However, countries that did not experience the Arab revolutions are blaming the

revolutions for the regional stability and are seeking to restore the original Arab order.

The worsening of the governance systems in any of the Arab countries took place at the

beginning of the 21st Century. The poor governance in many of the countries was characterized

by inflation and high costs of living as well as the inability of the governments to provide

sufficient basic services such as education and healthcare to the citizens. Furthermore, many of

the governments failed to create conducive environments for the private sector to thrive by

imposing rents on the entrepreneurs, making it difficult for them to create jobs and employment

opportunities for the large proportion of the young population that was unemployed. When the

social constructs in the region were no longer holding due to poor governance, many of the Arab

communities used protests as a way of airing their grievances.

b. Rentierism

It is no doubt that the MENA region is one of the richest areas of the world in terms of energy

resources, which have been the drivers of economies of many of the member countries. Both the

oil producing and the non-oil producing countries in the MENA region benefited from these

resources abundantly. In the oil producing countries, many of the governments were capable of
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buying the loyalty of their citizens and promoting authoritarianism while the non-oil producers

benefited from the capital flows, remittances from the citizens working in the oil producing

countries as well as foreign aid from those countries.

Instead of using the profits from oil exportation to encourage the growth of the private sector and

create jobs for the citizens, many of the governments used the profits accrued from the oil

businesses to provide for their people making them to rely on the governments for their most

basic needs. Similarly, the governments of the non-oil producing countries also became reliant

on the capital inflows and the foreign aid from the oil producers. The result was the creation of a

system of rentierism whereby almost all the Arab countries depended on the wealth from the oil

producers.

To move out of the present economic stagnation to economic prosperity, there will be the

requirement that the governments in many of the Arab countries abandon the rentier systems.

However, the process will prove much difficult due to the dependence on the rent resources by

the governments for longer time periods. Attaining economic reforms in the region will only be

possible if they are accompanied by political reforms that encourage transparency and inclusion

of the people in national matters.

c. Media and Information Technology and Security

The increasing developments in the media and information technology have had a number of

implications in the politics of the countries in the MENA region. For many years the Arab

citizens have used the media as a tool for communication and expression of their opinion on

matters that affect their livelihoods and development. The existence of satellite television

channels such as Al-Jazeera have resulted in a fall in the control of the states by the

governments. Moreover, the rise of the internet and the development of social media sites such
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as Facebook and Twitter have resulted in an increase in the ability of the Arab populations to

access information and express their opinions. Despite the eruption of conflicts in many if the

Islamic states, the citizens, through media and technology still criticize the actions of the

governments without fear. The lack of control of the security sector in many of the Arab

countries have led to the expansion of their sovereignty in countries such as Egypt resulting in

political and economic unrest.

VII. The Geopolitical Landscape

One of the geopolitical factors that has played a vital role in the development of the current

situation in the MENA region is the regional conflict. The weakening of the Arab order caused

mainly by the economic and political revolutions in the area have resulted in the fall of the

powerful countries, leading to the power imbalances. Regional conflicts have been created by the

hindrance of political reforms in the countries that wish to provide inclusive governance by the

repressive governments in other countries. The result has been the eruption of interstate wars

such as the wars between; Iran and Saudi Arabia, Israel and Palestine and Qatar and the United

Arab Emirates.

Energy geopolitics has also contributed significantly to the current instability in the MENA

region. Although the region’s energy resources remain vital in the global energy sector, the

recent fall in the oil prices, which is expected to persist in the global energy markets worsens the

already shaky situation of many of the Arab countries. For the oil exporters, significant portions

of foreign exchange are lost due to the reduction in prices of oil, making it difficult to care for

their populations. For the oil importers that rely on the oil producing countries for aid, the current

oil prices are likely to result in adverse effects, further worsening the already bad situation.
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Environmental factors also play a vital role in the problems experienced in the Middle East and

North Africa region. Climate change, for instance, is likely to have both direct and indirect

negative implications on the people living in the region. In the recent years, the region has

experienced the hottest temperatures, making the region nearly inhabitable. Apart from

threatening the existence of the inhabitants of the region, climate change is likely to have adverse

impacts on the water and food supplies in the region. Despite the vastness of the MENA region

and its occupation by 5 percent of the world’s population, the region has only 1.2 percent of the

renewable water resources which are likely to reduce due to the high temperature experienced in

the region as a result of climate change (El-Husseini et al., 2009). In many of the countries in the

Arab region, the poor agricultural practices, coupled with climate change have resulted in the

aggravation of desertification, thus threatening the lives of the inhabitants of the region. Many of

the political conflicts that occur also result from the environmental factors such as climate

change and the struggle for natural resources.

VIII. Geographical Landscape

Geographically, the MENA Region is strategically situated at the junction of three continents

namely Europe, Asia and Africa. The vastness of the region makes it have the potential of

producing renewable energy that can be used as a solution to the existing political and economic

unrest. The region experiences a lot of sunny weather that can be tapped and converted into solar

energy. Since the MENA region is a desert, the high winds experienced in the region can be

tapped and converted into renewable wind energy. With the current shift in the global energy

market from the non-renewables to the renewables, the region has the potential of unlocking the

long-term economic stagnation through investments in renewable energy.

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a. The Changing Energy Landscape in the MENA Region

The Middle East and North Africa region has for several years been known for its abundance of

energy resources. The region harbors more than half of the global proven crude oil deposits and a

third of the natural gas reserves. For the past five decades, the region has been ranked as one of

the largest energy producer and suppliers in the world. The domestic energy market in the region

has been characterized by the by the copiously available carbon fuels that are produced

regionally. Globally, the region has the lowest furl prices for both primary energy and electricity,

and does not have the incentive needed to invest in alternative energy sources such as solar, wind

and nuclear energy. The domestic energy market has undergone significant changes due to a

number of factors that have resulted in shifting regional energy priorities.

b. The Rise in Regional Energy Demands

One of the factors that has caused the change is the surge in the regional energy demand across

the MENA countries. Following the low levels of industrialization, lower populations by country

compared to the other regions of the world and the developing South and East Asia, the MENA

region has been the core demand market for energy, hence the small size of its energy market.

However, due to the expansion in the exploration and production of oil in the area during the

1970s, the energy demand in the region has continued to grow each decade.

The rise in energy demand has resulted in a number of implications for the oil importing and

exporting countries in the MENA region. First, the regional producers and exporters of energy

such as Iran and Saudi Arabia have become the main energy consumers (Bahgat, 2014). Saudi

Arabia has been ranked among the largest consumers of oil and gas while Iran, despite

production and exportation of natural gas, imports the product from other countries as a way of

ensuring a balance in the domestic shortfalls. With the rise in the standards of living of the
SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 18

people in the region, the energy demand is expected to continue rising in the coming years. There

will, therefore, be the requirement to consider investment in alternative energy sources to

provide solutions to the looming energy crisis.

Fig 2: Regional trends in energy use and intensity between 1971 and 2010. Source: World Bank,

2013.

c. Rising Economic Cost of Domestic Energy

The second factor that has contributed to the shifting energy priorities in the MENA region is the

rising economic cost of the surging energy demand both in the net energy importing and

exporting countries. The delivery of safer energy supplies at affordable prices to the public has

been a policy issue in the region for a long period of time. For the energy producing and

exporting countries such as Saudi Arabia, the supplies came from domestic production while for

the net importers, contracts with the producers were used. Affordability of the energy in the

region has for a long time been regulated by the domestic government transfers. In the oil

exporting countries, these transfers take the form of government regulation on the prices of oil

and gas while in the net importing countries, subsidies are commonly used.

The rise in the global oil prices in the recent years has led to the change in the environment in

which the governments of the MENA countries conduct these historical deals with their citizens.
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For the countries that export oil, the rising demand in the domestically produced energy has led

to growing production of the fossil fuels to the external markets that have the potential of

offering high prices. The net oil importing countries such as Tunisia and Egypt, which have

relied on the preferential contacts with the oil producers are also experiencing economic

downturn following the erosion of the contracts and the increased pay for the energy deposits

due to the rising energy demand in the region. The reliance on energy from fossil fuels in the

region, the fluctuating oil prices and the increased domestic energy demand result in the rise in

the fiscal costs associated with energy, making it economically feasible for the countries to shift

to renewables.

d. Environmental Concerns

The third which has resulted in a shift in the energy priorities in the region is the environmental

consequences associated with the continuous use of fossil fuels in the region. One of the reasons

why the MENA region should consider the renewable energy sources over the fossil fuels is the

elimination of pollution. The production and refining of oil and gas deposits to produce energy

results in environmental pollution. Apart from the production of ozone depleting substances and

other harmful gases in the atmosphere, it results in the pollution of the already scarce natural

water resources in the region (World Bank, 2011). These effects, coupled with the grueling

consequences of climatic change in the region are likely to have irreversible environmental

consequences on the MENA region.

Embracing the renewable energy technologies such as wind and solar energy will help the

countries to combat the negative effects of environmental pollution caused by increased reliance

on the fossil fuels for energy. A change from the fossil fuels which have less energy content and

result in high pollution rates to the renewable energy sources with less environmental footprint
SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 20

will help the countries in diversifying their economies and developing solutions to some of the

problems that have persisted in the region.

IX. Promoting Solutions

To combat the historical overreliance on fossil fuels as the backbone of many of the MENA

economies, there is the necessity of the country to develop strategies on investing in alternative

energy sources. Increased investment in the renewable energy sources such as wind and solar

energy offers great potential for the region. According to Hertog and Luciani (2009), in terms of

renewable energy, the region is characterized by the clear skies and huge amounts of sunlight

and high winds that occupy more than 80% of the days in a year. Apart from the UAE which

operates mega solar projects and encourages investments in the clean energy technologies, the

other MENA countries have not yet utilized this potential that can help in solving the energy

issues in the region (El-Hussein, EL Sayeed, Fayad and Zywietz, 2009). Investing in the

renewable energy can help the Arab countries to improve their economies and reduce the

instabilities experienced in the region.

Apart from the renewable energy resources, investments in the nuclear energy can also play a

vital role in solving the energy problems in the MENA states. Shifting from the overreliance of

the countries in fossil fuels to nuclear energy will lead to diversification of the economies (El-

Katiri, 2014). Consequently, the countries will be able of create employment opportunities for

their citizens both in the public and private sectors, leading to economic sustainability and

bringing the violent revolutions in many of the MENA countries to a stop.

Thirdly, promoting the renewable energy solutions in the MENA countries can be achieved

through the combination of the national renewable energy and the progressive regional energy

strategies. The integration of the strategies can be achieved through; the use of the renewable
SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 21

energy in achieving the basic objectives as a way of making the technologies more acceptable,

increasing the values of the renewable energy sources by exploiting their positive economic

effects and the use of project based policies that are managed through efficient administrations.

The solutions to the current energy crises in many of the Arab countries can also be achieved

through reforming the domestic energy markets in the MENA region, regulatory incentives and

making maximum use of the green growth opportunities.

X. Counterarguments

Although the renewable energy sector is considered to be an adequate solution for the energy

crises that has affected many of the Arab countries, there are several arguments that counter their

adoption and implementation in the MENA region. One of the arguments against the renewable

energy sources is that their benefits are intangible and can only be accrued by the countries with

high levels of income. Since many of the Arab countries are middle income economies, this

ideology makes it difficult for them to invest in the renewable energy technologies.

Secondly, in most of the Arab countries, government regulations on the oil and gas prices is

through subsidies. Together with the low prices of domestic energy, these subsidies will have a

negative impact on the renewable energy sources in the MENA countries by reducing their

market competitiveness (Lilliestam and Patt, 2015). Consequently, investments in the renewable

energy sources will not have significant effects on the improvement of the regional economies.

Other factors that are likely to hinder the adoption of the renewable energy in the Arab countries

are the lack of skilled labor to handle the high skilled technology jobs accompanied by the

adoption of the renewable energy, and the electricity pricing in the region which is lower than

the international prices.

SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 22

XI. Conclusion

Sustainability in energy production and supply within the countries in the MENA region is

important in reducing the overreliance on the hydrocarbon energy. Development of sustainable

energy solutions will help in combating the pervasive regional economic stagnation and facilitate

growth and development. However, there will be the need for the regional politics to change

their current outlook. Moreover, it will be necessary for the governments to understand the social

movements within their countries as well as the political and economic factors that drive them.

XII. Recommendations

Based on the above conclusions, the paper recommends the following:

a. Reforming the pricing of the regional domestic fuel supplies as a way of increasing the

competitiveness of the renewable energy against the fossil fuels.

b. Establishment of cost effective energy and electricity tariffs in the MENA region to

promote deployment of renewable energy.

c. Increasing profitability of the renewable energy through exportation.

d. Diversification of energy sources in the market through structural reforms and pricing

mechanisms.
SOLUTIONS FOR ENERGY STABILITY IN THE MENA REGION 23

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